Starburst Performance

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New Product Launch for Mars; an idea and strategy I’ve had since the mid 1990’s.

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Starburst Performance

  1. 1. MarsInC.<br />Introducing <br />Starburst Performance<br />Joshua S. Neeper<br />
  2. 2. Who Is Mars?<br /><ul><li>Established in 1911 by Frank C. Mars
  3. 3. International Confectionary Company
  4. 4. Based in McLean, Virginia, Mars has net sales of more than $30 billion, six business segments including Chocolate, Petcare, Food, Gum & Confections, and Symbioscience, and more than 65,000 Associates</li></li></ul><li>What They Make<br />Candy<br />M&M’s<br />Milky Way<br />3 Musketeers <br />Mars Bar<br />Munch Bar <br />Skittles<br />Starburst<br />Twix<br />Dove<br />Snickers<br />Gum<br />Extra<br />Orbit<br />Wrigley<br />Doublemint<br />Spearmint<br />Juicy Fruit<br />Pet Products<br />Canin <br />Whiskas<br />Royal <br />Pedigree<br />Food &Beverage<br />Flavia <br />CirkuHealth<br />Snickers Ice Cream<br />Twix Ice Cream <br />Uncle Ben’s Rice<br />Each brand also has several product lines that branch off.<br />
  5. 5. Proposal<br />Introducing Mars’s newest product, Starburst Performance drink to enter into a new market of product manufacturing but targeting most of the existing consumers that use Mars products while incorporating e-commerce marketing to increase sales for all brands.<br />Investment of $50 million<br />
  6. 6. Underlining Reasoning<br />1. Market only has two competitors: Gatorade and PowerAde, that compete for the same target market but no attempt has been made to threaten their market share, until now.<br />2. Creates new online marketing strategies, international commercials, endorsements, and sporting event sponsoring<br />3. Designed to track multiple realms of analytics in regards to:<br /><ul><li>Online traffic
  7. 7. Sales
  8. 8. Awareness
  9. 9. Loyalty
  10. 10. Effectiveness</li></li></ul><li>Product Overview<br /><ul><li>Starburst Performance is a new performance drink that competes directly with Gatorade & PowerAde
  11. 11. Developed by Mars’s Symbio-Science division
  12. 12. Engineered to optimize every athletes’ pre & post game/ training
  13. 13. Duplicates the original Starburst flavors
  14. 14. Packed with amino acids, proteins, B12 vitamins & Mars’s secret performance blend
  15. 15. Bottled and powered options available </li></li></ul><li>Industry Overview<br />Sports Drink Market<br /><ul><li>$300 billion sales worldwide in 2005
  16. 16. North America accounted for roughly 49% consumption in 2005
  17. 17. Asia Pacific region accounted for a 38% share in global consumption in 2005
  18. 18. Japan ranked second to the U.S. in terms of per capita consumption, but China is assumed to overtake Japan as Asia Pacific's leading consumer by volume in year 2010
  19. 19. 2003, Germany was the leading market for sports drinks in Western Europe followed by Italy then the U.K</li></ul>(all information below attained from http://researchwikis.com/Sports_Drink_Market)<br />
  20. 20. Market Metrics<br />Global functional drink volume (millions of liters)<br />CATEGORY 2006 FORECAST 2011<br />SPORTS DRINKS 9,870.6 13,301.70<br />ENERGY DRINKS 2,429.4 3,534.10<br />ELIXIRS 320.7 366.10<br />TOTAL 12,620.7 17,201.9<br />Sports Beverage Market<br />(Source: Euromonitor International, 2007)<br />Wholesale Dollars (in US billion)<br />1997 $1.48<br />1998 $1.69<br />1999 $1.87<br />2000 $2.01<br />2001 $2.18<br />2002 $2.41<br />(all information below attained from http://researchwikis.com/Sports_Drink_Market)<br />
  21. 21. Market Share & Capitalization<br />
  22. 22. Demographics<br />Sports<br /><ul><li>Football http://blogs.loc.gov</li></ul>“In 1985 there were 509 football teams in the NCAA and in 2008 the number had grown to 628 teams. During this same period of time attendance at these games increased by about 40% from 34,952,000 in 1985 to 48,839,000 in 2008.”<br />
  23. 23. Soccer Demographics<br /><ul><li>An estimated 18,188 women played soccer in the three college divisions in 2001, compared with 17,788 in track and field
  24. 24. “Of the 18 million Americans who play soccer, 78% are under the age of eighteen. In the 1990s, soccer was recognized as the fastest-growing college and high school sport in the United States.”
  25. 25. “The 300,000 soccer clubs worldwide are comprised of 240 million players, 30 million of which are women.”</li></ul>Soccer Facts from: http://usa.usembassy.de/sports-soccer.htm<br />
  26. 26. Golf Demographics<br /><ul><li>1985 there were approximately 17 million golfers in the U.S. playing over 414 million rounds of golf, at over 12,000 facilities.
  27. 27. 2003 the numbers had climbed to over 27 million golfers playing almost half a million rounds, at almost 16,000 facilities.</li></ul>Golf Facts from: http://www.loc.gov/rr/business/BERA/issue3/golf.html<br />
  28. 28. Tennis Demographics<br /><ul><li>2002 the number of men playing was just over 6 million, compared to almost 5 million women players</li></ul>Tennis Facts from: http://www.loc.gov/rr/business/BERA/issue3/tennis.html<br />
  29. 29. General Facts<br /><ul><li>“In 2003, 58 percent of boys and 51 percent of girls in high school played on a sports team.”
  30. 30. “About $1 billion in athletic scholarships are awarded through the National Collegiate Athletic Association (NCAA) each year. Over 126,000 student-athletes receive either a partial or a full athletic scholarship.”</li></ul>General Facts from: http://usa.usembassy.de/sports-youth.htm<br />
  31. 31. Targeted Sports<br />Soccer <br />Baseball <br />Basketball<br />Nascar <br />Bassmaster<br />Hockey <br />Lacrosse <br />Tennis <br />Track & Field <br />Football <br />All sports will be targeted and marketed: <br /><ul><li>Youth
  32. 32. Collegiate
  33. 33. Professional level</li></li></ul><li>Psychographics<br /><ul><li>Physical Activity
  34. 34. Healthy Products
  35. 35. Modern Supplement
  36. 36. Relevant Merchandise</li></ul>Athletes<br />Ages from 5 to 50<br />Jr. High <br />High School<br />Club Sports<br />Collegiate <br />Minor League<br />Professional <br />Hobby <br /><ul><li>They enjoy sports
  37. 37. They train/ workout regularly
  38. 38. Hard Working
  39. 39. Push the limit of the human body every day
  40. 40. Come from all across the world
  41. 41. Have passion
  42. 42. Have love
  43. 43. Intense workouts </li></li></ul><li>Off-Line Behavior<br /><ul><li>Team Orientated – School, Professional, etc.
  44. 44. Look to satisfy needs:
  45. 45. Hydration
  46. 46. Natural Energy
  47. 47. An alternative to water, which is perceived as bland
  48. 48. Healthy option for “re-fueling” during physical activity
  49. 49. Require large amounts of fluid intake
  50. 50. Younger, venturesome, and recreational
  51. 51. They live a very busy life style, constantly working, training and being active
  52. 52. Travel very heavily especially when the athletes get older</li></li></ul><li>On-Line Behavior<br /><ul><li>Reliant on peers for information
  53. 53. Heavy users of social media
  54. 54. Appeal to loyalty/rewards programs
  55. 55. More convenience oriented
  56. 56. Stay up to date with sports
  57. 57. Avid ESPN viewers
  58. 58. Watch several sports videos </li></li></ul><li>Competitive Analysis<br />On-Line & Off-Line Competition<br />Pepsi, Co.<br /><ul><li>Gatorade</li></ul>Coca Cola<br /><ul><li>PowerAde</li></li></ul><li>Off-Line Marketing Plan<br />Objectives<br /><ul><li>Launch Starburst Performance TV commercials in 5 international regions
  59. 59. Launch a Mars TV commercial in U.S.
  60. 60. Synergize all brands while associating them with Mars
  61. 61. Highlight all the GOOD that Mars has done since its beginning
  62. 62. Own the largest solar grid in the U.S.
  63. 63. Charity Donations</li></ul>Mars’s 5 Principles <br /> •Quality<br /> •Responsibility <br /> •Mutuality <br /> •Efficiency<br /> •Freedom<br /><ul><li>Awards </li></li></ul><li>Goals<br /><ul><li>Starburst Performance ($500,000,000 in first year sales)
  64. 64. Increase overall sales of the company by 20%
  65. 65. Increase each brand’s sales by at least 3% world wide
  66. 66. Generate Starburst Performance sales in 5 countries within first year</li></ul> o U.S.<br /> o China<br /> o U.K<br /> o Russia<br /> o Australia <br />
  67. 67. Off-Line Sales Force<br />Sales Force:<br /><ul><li>Compiled of the company’s best sales people
  68. 68. In charge of:
  69. 69. Distribution of samples
  70. 70. University relations/selling
  71. 71. Professional team liaisons
  72. 72. Traveling up to 70% of the time </li></li></ul><li>Crucial Off-Line Issue<br />Mars & Pepsi use the same company (BBDO) to create and design commercials.<br />Conflict of interests could be a problem.<br />
  73. 73. On-Line Marketing Plan<br />Create Synergy between Mars’s Corporate website and all of their brands<br />Objectives<br /><ul><li>Synchronize all online presence for quicker publication
  74. 74. Drive all traffic to the corporate web site
  75. 75. Increase presence and brand association to Mars and all of their products
  76. 76. Create a Youtube, Facebook and Twitter page for Starburst Performance</li></ul>Goals<br /><ul><li>Increase each brand’s sales by at least 3% world wide
  77. 77. Generate a total 1,000,000 hits per day to the corporate website
  78. 78. Generate no less than 300,000 hits per day for Starburst Performance
  79. 79. Increase brand awareness and loyalty for all Mars Products </li></li></ul><li>Advertising & Traffic Drivers<br />All traffic drivers will include Google Business Solutions<br /><ul><li>Ad Words
  80. 80. Ad Sense
  81. 81. Analytics
  82. 82. Website Optimizer</li></ul>On-Line Measurements<br /><ul><li>Stickiness
  83. 83. Conversion Rates
  84. 84. Average Time on Site
  85. 85. Brand Awareness
  86. 86. Referring sites
  87. 87. Geographical Areas </li></li></ul><li>5 Social Media Tactics<br />Facebook<br /><ul><li>Each brand/product has their own Facebook page
  88. 88. As far as we know they do not participate in Facebook Ads</li></ul>2. Youtube<br /><ul><li>Mars already has product commercials on Youtube
  89. 89. We plan on making all of our TV commercials available for view on YouTube
  90. 90. We will not spend money on advertising on Youtube such as: commercials before videos start or pop up ads during videos</li></ul>3. My Space will not be a part of our online campaign<br />4. Twitter<br /><ul><li>Design Starburst Performance Twitter page.
  91. 91. Fans can follow and receive instant news and updates when on the go</li></ul>5. Mars.com (Corporate Website)<br /><ul><li>Offer RSS feeds for fans
  92. 92. These feeds will allow others to get the latest news and product info through e-mail, mobile devices and/or your e-mail home page </li></li></ul><li>Metrics of Success<br /><ul><li>Professional Team sponsorships
  93. 93. University Sponsorships
  94. 94. 2 Professional Athlete Endorsements
  95. 95. 1 Male
  96. 96. 1 Female
  97. 97. Saturated Online Advertising
  98. 98. Targeted Sports Advertising
  99. 99. TV Commercials
  100. 100. E-commerce Team
  101. 101. Sales Force
  102. 102. Mars’s international presence </li></li></ul><li>
  103. 103. Legal Issues<br />The entire plan needs to go through the legal department since this area is not our specialty.<br /><ul><li>Make decision regarding BBDO’s conflict of interests
  104. 104. Endorsement contracts
  105. 105. College/University Sponsorships
  106. 106. Copy Right Issues
  107. 107. Patents
  108. 108. Nutrition
  109. 109. USDA
  110. 110. FDA
  111. 111. Marketing Laws on an International Level </li></li></ul><li>Closing Statements<br /> - Enormous market and opportunity <br /> - 2 competitors: Gatorade and PowerAde <br /> - Gatorade does not have money or resources to compete with Mars or the Mars family regarding cash <br /> - Low manufacturing investment <br /> - Product distribution partnership with Budweiser<br />
  112. 112. Starburst<br />Performance<br />“Evolve”<br />

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